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Cyber Attacks on Financial Institutions | Why Banks Are Caught in the Crosshairs
In recent years, there has been a significant uptick in the frequency and sophistication of attacks on the financial and banking industry. The following statistics illustrate the current breadth and depth of cyber attacks by various types of threat actors on financial entities:
- Financial institutions were the second most impacted sector based on the number of reported data breaches last year. Institutions in the U.S., Argentina, Brazil, and China were most affected. As of December 2022, finance and insurance organizations globally experienced 566 breaches, leading to over 254 million leaked records.
- Ransomware attacks on financial services have increased from 55% in 2022 to 64% in 2023, which is nearly double the 34% reported in 2021. Only 1 in 10 attacks were stopped before encryption took place, making a total of 81% of organizations a victim of data encryption.
- Data breaches cost the finance sector the second highest costs amongst all others at $5.9 million.
This blog explores the rise in cyber attacks on the banking and financial industries, their far-reaching consequences, and what these high-target entities can do to protect against the evolving tactics of threat actors.